U.S. tightens sanctions on Russia over Ukraine

Gregory Korte and USA TODAY , KARE4:29 PM. CDT July 16, 2014

Russia's President Vladimir Putin looks on during his meeting with India's Prime Minister Narendra Modi on the sidelines of the BRICS group leaders sumit in Fortaleza, Brazil, on July 16, 2014. Leaders of the BRICS group of emerging powers ( Brazil, Russia, India, China and South Africa) met today to launch a new development bank and a reserve fund seen as counterweights to Western-led financial institutions. AFP PHOTO / RIA-NOVOSTI / POOL / MIKHAIL KLIMENTYEV (Photo credit should read MIKHAIL KLIMENTYEV/AFP/Getty Images)(Photo: MIKHAIL KLIMENTYEV AFP/Getty Images)

WASHINGTON — The United States is escalating its sanctions against Russia over the Ukrainian crisis, targeting some of Russia's largest companies and individuals tied to Russian President Vladimir Putin.

President Obama will speak publicly on the sanctions at 5:15 p.m. Eastern time.

The companies targeted include Gazprombank, Russia's third largest bank; Vnesheconombank, a bank tied closely to Putin; Novatek, its largest natural gas supplier; and oil giant Rosneft. U.S. are forbidden from issuing new, long-term financing for these companies,, but their assets are not completely frozen.

Also listed are five Russian nationals and 11 Russian and Ukrainian entities whose assets will be frozen. Those other targets include Russian defense concerns including Kalashnikov, the maker of the iconic AK-47 assault rifle, and UralVagonZavod, a major tank maker.

The Treasury action follows a round of phone calls by President Obama to European leaders — including British Prime Minister David Cameron and German Chancellor Angela Merkel — to ensure their support. In a call with Merkel Tuesday, the two leaders agreed to "take immediate steps to deescalate the situation in eastern Ukraine amid the ongoing violence there," the White House said.

Hours before the announcement, White House Press Secretary Josh Earnest warned that Russia's one-step-forward, two-steps back response to the crisis "put them at risk of greater isolation and greater economic consequences."